Flow of Import
- Payment
- Preparations for receiving goods
Remittance
Remittance 送金
Advanced payment : 사전송금 事前送金
(cash with order)
Deferred payment : 사후송금 事後
送金
(Delivery first, payment afterwards)
▶
Telegraphic Transfer
from
buyer’s bank account
to
seller’s bank account
Workflow of
advanced payment
① contract
⑤ shipment ④ ②
③
exporter importer exporter’s bank importer’s bank
Workflow of
deferred payment
① contract
② shipment ⑤ ③
④
exporter importer exporter’s bank importer’s bank
From: Jo, Heungcheol To: Shigeru Tamura Date: May 29, 2017
Subject: Remittance for Contract Amount of Pressure Rice Cookers
Dear Mr. Tamura,
In accordance with the terms and conditions of Contract (No. ****) for Pressure Rice Cookers, we are pleased to remit contract amount (US$ 240,000) to your bank account by telegraphic transfer on May 29, 2017.
Therefore, please let us know your receipt as soon as you check your bank account. Your kind confirmation would be appreciated. Best regards,
________________________________________ _________________________________________ _________________________________________
Payment by way of L/C
■
After an importer has made a contract
with an exporter,
the importer asks his/her bank to
open L/C in favor of the exporter
▶
the importer: applicant
▶the exporter: beneficiary
(1)
The applicant
requests
the issuing
bank
to
establish L/C
in favor of
the beneficiary after a sales contract
has been made.
▶
After L/C is established, the bank gives
the applicant its copy
.
(2)
The issuing bank
sends the L/C
(3)
The advising bank
notifies
the exporter
of
the arrival of L/C
.
(4)
The exporter
confirms the L/C
and
picks it up
.
(5)
The exporter draws
B/E
and attaches
to the bill
documents required in L/C
,
such as
invoice, packing list, B/L,
insurance policy and certificate of
origin
after the shipment has been
completed.
Shipping documents
(運送書類)
required in L/C
■
B/L
■
commercial invoice
■
packing list
■
insurance policy (保險 證券)
■
certificate of origin (原産地證明書)
(6)
The exporter requests his bank to
negotiate
the documentary bill or
draft
(貨換於音)
▶
documentary bill
:
bill of exchange with various documents
attached to it
(7) The negotiating bank
checks
if all the
documents are presented as stipulated
in the L/C
and
if there are any errors in
the documents drawn up
.
And if they find that everything is OK,
they
pay the exporter
.
(8) The negotiating bank
sends the
shipping documents to the opening
bank
after they have paid the exporter
for the goods.
(9)
The opening bank
notifies
the importer
of
the arrival of shipping
documents
.
(10)
The importer
pays money
stated in
L/C
to
the opening bank
to pick the
documents up
.
(11)
The opening bank
sends the money
to the negotiating bank
,
which
already paid the money to the
exporter on behalf of the importer.
■
Application for
Irrevocable Documentary Credit
輸入 信用狀 發行 申請書
- The form of an application is a little bit
different according to a bank.
- Application is possible both online and
off-line.
☞
There are some documents required,
especially
when the importer tries to
open an L/C account with his/her bank
for the first time
.
▶ In this case, the documents required
vary
according to a country
.
■
In Korea, banks require
Letter of Guarantee
(L/G), called
擔保 借入證, especially for small and
medium companies, while in Japan
they don’t require it.
Tip
!!
It is advisable that
you should consult
a staff member in charge of L/C business
in the bank about required documents
!!
Three ways
Mail Credit
Cable Credit
SWIFT System
■
Mail Credit
The opening bank sends the original
copy and its duplicate to the advising
bank
by mail
.
■
Cable Credit
The opening bank sends the advising
bank the contents of L/C
by telegram
■
SWIFT System
SWIFT:
S
ociety for
W
orldwide
I
nterbank
F
inancial
T
elecommunication
世界 銀行 間 金融 Data 通信 協會
The opening bank sends the advising
bank an L/C
by email
▶
Almost all banks that joined
SWIFT
use
this system
.
From: Jo, Heungcheol To: Shigeru Tamura Date: May 29, 2017
Subject: Advising of L/C establishment
Dear Mr. Tamura,
In accordance with the terms and conditions of Contract (No. ****), we are pleased to advise of L/C establishment as follows.
L/C No.: LK 123456
L/C amount: US$240,000.00
Latest shipping date: August 20, 2017
Expiry date: August 30, 2017
Opening bank: Hana Bank, Korea Advising bank: Tokyo Bank, Japan
Therefore, please check your bank and inform us of your receipt of L/C
We look forward to your reply. Best regards,
________________________________________ _________________________________________ _________________________________________
Preparations for receiving goods
物品
受領 準備
Getting ready for payment
輸入 代金 準備
Checking shipping schedule
船積 日程 確認
Especially in case that an importer is
responsible for arranging a vessel and
booking space
, he/she should
check
the possible shipping date
by
sending
an exporter an e-mail confirming the
shipping schedule
.
▶
When asked to confirm the shipping
schedule by an importer,
an exporter
has to
advise of the shipping schedule
,
followed by
the advice of shipment
.
From: Jo, Heungcheol To: Shigeru Tamura Date: August 7, 2017
Subject: Confirmation of shipping schedule
Dear Mr. Tamura,
Please inform us of shipping schedule for our Order No. **** of pressure rice cookers (PRC- 120) 2,000 pcs.
Therefore, We look forward to your early reply. Best regards,
________________________________________ ________________________________________ ________________________________________
From: Shigeru Tamura To: Jo, Heungcheol
Date: August 10, 2017
Subject: Advising of shipping schedule
Dear Mr. Jo,
In reply to your request of your e-mail dated
August 7, 2017, we are pleased to inform you of shipping schedule for Order No. **** of
pressure rice cookers (PRC-120) 2,000 pcs as follows.
ETD Yokohama port, Japan: August 18, 2017 ETA Busan port, Korea: August 22, 2017
Vessel name: Gloria Ocean (voyage no. 15)
Please kindly note that we will inform you of our shipment for Order No. **** of
pressure rice cookers (PRC-120) 2,000 pcs as soon as shipment.
Best regards,
________________________________________ ________________________________________ ________________________________________
From: Shigeru Tamura To: Jo, Heungcheol
Date: August 19, 2017
Subject: Advising of shipment
Dear Mr. Jo,
We are pleased to advise you that we shipped your Order No. **** of pressure rice cookers (PRC-120) 2,000 pcs as follows.
Vessel name: Gloria Ocean (voyage no. 15)
Departure Yokohama port, Japan: August 18, 2017
ETA Busan port, Korea: August 22, 2017 B/L No.: 12345
We trust that the goods will reach you in good order and give you complete satisfaction so that you may favor us with future orders.
Best regards,
____________________________________________ ____________________________________________ ____________________________________________
